The Bank of England missed as many as 50 instances of suspected market abuse
that have since been handed over to financial regulators, its governor has
admitted.
Mark Carney revealed that procedures introduced since the Bank was accused of
turning a blind eye to currency manipulation a year ago had uncovered 50
possible cases of misconduct, 42 of which have been passed on to the
Financial Conduct Authority. “The FCA is investigating a number of those,”
Mr Carney said.
The governor was testifying to MPs on the Treasury select committee over the
Bank’s role in the foreign exchange- rigging scandal. He also revealed that
Martin Mallett, its former chief forex dealer, had been fired for “at least
twenty” breaches of protocol over eight years.
Mr Carney said that Mr Mallett, who was dismissed in November, had violated
the Bank’s IT policy, breached confidentiality by sharing documents,
ventured “personal opinions” on the stance of policy, used “inappropriate
language” and sent “inappropriate attachments” in emails: “things that could
have brought the Bank’s reputation into disrepute”.
The breaches were discovered during the Bank’s internal investigation last
year into what officials knew about manipulation of the $5.3 trillion-a-day
currency markets. The governor conceded that the Bank’s reputation had
“taken a knock”, and added: “It hasn’t been a pleasant experience.”
However, he emphasised that Mr Mallett had not been aw

Britain’s construction sector unexpectedly bounced back last month, driven by
a resurgence in housebuilding.
The Markit/CIPS purchasing managers’ index (PMI) for construction rose to 60.1
in February from 59.1 a month earlier, its highest level since October. Any
mark above 50 signals growth.
Residential, commercial and civil engineering activity all grew at a quicker
pace in February, with residential again witnessing the strongest rate of
expansion.
Construction companies mostly linked new business gains to improving economic
conditions, but some noted that uncertainties surrounding the forthcoming
general election had resulted in delays to spending decisions among clients.
The construction sector’s better than expected performance comes a day after
it was revealed that the manufacturing industry’s PMI rose to a seven-month
high in February as the

Barclays has increased its provison for the legal costs of foreign exchange
rate-rigging by £750 million to £1.25 billion and revealed that it faces a
string of other legal issues.
A new investigation into its con-troversial capital-raising from Qatari
investors in 2008 has been opened by a regulator that the bank did not name.
Barclays is also being investigated over the Qatari money by the Serious Fraud
Office, the US Department of Justice and the US Securities and Exchange
Commission. It has already been fined £50 million by the Financial Conduct
Authority for not properly disclosing fees that were part of the
fundraising. Barclays is contesting the fine.
The bank also said that it was providing information to the justice department
in an unconnected investigation into precious metals trading.
Barclays’ increase to its previous £500 million foreign